Previously known as “The Property Planner, Buyer and Professor”
Got a question for the trio? Submit our online form!
Show Notes – Climate Change and Property
This week on The Property Trio, the team dives into how environmental risks are reshaping the housing market, from skyrocketing insurance premiums to property value discounts in flood-prone areas.
The scale of the risk is staggering
Drawing on the Climate Council’s At Our Front Door report and the latest insurance data, the Trio unpacks what “moderate” and “high-risk” actually mean for everyday Australians.
With more than two million homes already exposed, and locations like Hawkesbury and Brisbane at the front line, the warnings of 2019 and 2022 are no longer projections, they’re reality.
Insurance has become the frontline battle
The average Australian might pay around $2,200 for home and contents cover, but in high-risk zones, families are seeing $7,000, $12,000, even $30,000 premiums.
For some, the flood component alone tops $8,000 annually.
The Trio explore how these costs push households into stress, and why underinsurance (or no insurance at all) is becoming common in vulnerable regions.
Property markets are already adjusting
Buyers are cautious, lenders are wary, and price discounts are appearing.
UTS research showed Richmond homes in 1-in-100 flood zones selling for nearly 11% less, while post-flood Lismore recorded value drops of around 30%.
Across Narrabri, Forbes, and even Sydney pockets like Windsor, the same hesitation is taking hold.
The bigger picture matters too
Disasters are costing billions annually, with projections hitting $94 billion per year by 2060 under high-emission scenarios.
Banks, heavily exposed to mortgages, face systemic risks, while lower-income households bear the brunt.
Yet preparedness lags, with builders, codes, and infrastructure still playing catch-up.
So what can investors do?
The Trio shares a practical five-step checklist:
- Use the data—flood maps, hazard reports, and council resources.
- Get insurance quotes before you buy.
- Assess the build—look for resilience features.
- Diversify your portfolio across regions and risks.
- Stay alert to policy and regulation changes.
Contact us to request a copy of Mike’s checklist.
Climate change isn’t just about the weather, it’s about the numbers
Premiums, property values, and policies are shifting now.
Smart investors who stress-test their assumptions will stay ahead; those who ignore the data risk owning tomorrow’s troubled assets.
Gold Nuggets
Cate Bakos’s gold nugget: Cate takes listeners through her process for checking online quotes through insurers. Not a precise solution on it’s own, but a very good gauge for flagging potential issues from the onset.
Mike Mortlock’s gold nugget: Mike warns listeners about the reliability (or unreliability) of online insurance calculators for determining insurance rebuild cost estimates.
David Johnston’s gold nugget: Dave echoes Mike’s point, and reminds our listeners about the importance of adhering to a robust checklist associated with avoiding risks when it comes to property selection.
Resources:
- Ep. 14 How to choose a location for investment – what to look for and what to avoid
- Ep. 32 Misunderstanding what makes a good property investment – No.2 of the top 7 Critical Mistakes
- Ep. 276 Where to Find Budget-Friendly Properties in Australia’s Capitals
- Ep. 286 Is Investing in Property Still Worth It? Navigating the Shifting Property Landscape
- Ep. 292 Property Trends to Watch in 2025 – What Every Investor and Homebuyer Needs to Know
